Matt Sparrow has rejected the offer of a new contract at Scunthorpe and will leave Glanford Park this summer.
The midfielder, who came through the Iron's youth set-up, was the club's longest-serving player having made close to 400 appearances.
The 28-year-old has decided to leave the club and seek a new challenge and Iron chairman Steve Wharton has wished Sparrow well.
"We are very disappointed but fully appreciate his decision and wish him well in the future," Wharton told the club's official website.
"He has been an excellent player for our club and played an important part in many of our recent successes."